“It was entirely unacceptable for the BBC to be secretly using stars to campaign “independently” on its behalf, let alone to deceive journalists as to whether this had taken place.

BBC veteran: Sir David Attenborough (Image: PA)

“It was wrong to have used taxpayers’ money for this purpose, and to have involved employees who may have felt pressurised to take part. It was wrong to put up

a news story online which failed to disclose its own involvement,” the Culture, Media and Sport committee says.

The MPs say that when the BBC’s role in the campaign was exposed it first denied it and then, when that was found to be untrue, claimed it fell within its editorial guidelines.

“The BBC should not have defended itself by arguing that this obviously underhand activity was somehow acceptable because it fell within editorial guidelines.

“And it is very disappointing that the Director General refused either to investigate or disavow the episode, and that the Chair saw no case to answer and defended the BBC’s actions,” the report says.

Hitting out: Dame Judi Dench

The all-party committee of MPs also call for the BBC Trust, which oversees the Corporation, to be axed and most of its duties handed to the watchdog Ofcom.

And it rejects the BBC’s plan to hire 100 local journalists to “provide impartial reporting on councils and public services.”

The committee said the plan was “well-intentioned” but could harm local newspaper groups.

“The BBC’s proposal to deploy extra reporters to supplement those employed by local newspapers was doubtless well-intentioned; but it would scarcely have touched on current gaps in coverage and raises questions about the use of public money by the BBC to subsidise and potentially encroach on newsgathering for other media organisations.

“In some cases, this might be an incentive for local newspapers to stop employing their own journalists for these purposes,” the report says.

However, the MPs recommend the BBC could share its archives and other resources with local newspapers. The Corporation should also do more to acknowledge local papers when it picks up stories from them.

Under fire: MPs also said the BBC should have resisted taking on the TV licence burden (Image: AFP)

The committee also says the BBC should have done more to resist the Government’s demand that it fund TV licences for the over 75s.

And it is withering in its assessment of the BBC’s senior management.

“At present the corporate governance of the BBC falls some way short of what is desirable. The Director General operates with too high a degree of independence; operationally, he is effectively accountable to no-one.

“Overall, however, we have reluctantly concluded that it has lost confidence and credibility and should be abolished. However, the problem that the Trust was intended to solve—the need

for the BBC’s top managers to be appropriately challenged and held to account on behalf of the licence fee payer—remains,” the report says.

Committee chair Jesse Norman MP said: “Based on more than six months of evidence and testimony, we believe the current structure, including the BBC Trust, needs to be abolished. In or judgement the key functions can and should be absorbed within Ofcom, the industry regulator, with suitable changes.

“Within the BBC, the Director General should be made accountable to a new unitary board, with a Chair of the board able to offer guidance and support in driving change, streamlining the organisation and cutting costs. And the new board needs to address a culture within the BBC that has been widely described as bureaucratic, arrogant and introspective."

A BBC spokeswoman said: “There are no rules preventing the BBC or its staff from making our case on broadcasting issues, and indeed the BBC has always been able to do so.”

She added: "This report is an important contribution to the debate on the future of the BBC.

"We support the committee’s assertion that the BBC’s independence should be protected by taking the BBC out of the political cycle, and agree with its proposal for an eleven or twelve year charter.

"Like the committee, we think the BBC should be externally regulated – we believe that a unitary board would be good for the BBC and strengthen accountability.

"We also welcome the committee’s support on the BBC’s record on producing distinctive programmes which we know that the public love, and its recognition of the BBC’s value to the UK and around the world."